Instant Solution ? Click "Buy button" to Download the solution File
They want to know whether there have been any breaches of the general or statutory law and whether there is any action that they can take in relation to the events which have occurred. Advise them.
BUSN2101 LAW OF BUSINESS ENTITIES
Due: 5 May 5 pm
The assignment is to be submitted via turnitin on wattle
Word limit: 1,500 words (10% tolerance either way acceptable)
Marks: this assignment is worth 20% of your final mark.
Please refer to the course outline for details on how the assignment will be assessed and
further details on submission and presentation. Note that late penalties apply.
Referencing should be in accordance with the Australian Guide to Legal Citation
For general information on referencing see
Winanga Station Pty Ltd owns a large farming property in western New South Wales. Ted is
the majority shareholder owning 55% of the shares. His wife Veronica owns 10% and their
three children own the remaining shares. Andrew owns 15%, James 10% and Diana 10%.
Ted, Veronica and Andrew are directors of the company and the only ones involved in the
running of the station. Until recently Ted had been managing director but he recently
relinquished this role, wanting to be less active in the management of the company and
Andrew is now managing director.
Ted and Veronica live in a house on the company property and Andrew and his wife Lucy
also live on the company property in another residence. James is at university in Canberra
and Diana is a doctor living in Dubbo.
Diana and James have concerns about a number of things which have happened. The property
has been in drought and stock levels have been reduced as a consequence. Several properties
in the district have been sold by the bank as they have been unable to keep up with
repayments on their mortgages. Diana and James believe that an unsolicited offer for the
property was made to Winanga Station Pty Ltd via the local stock and station agent. The offer
was above market value in the current depressed market climate.
The offer was rejected by the board. They had no interest in selling at this stage, particularly
because the buyer was foreign and Ted said he ?wasn?t interested in selling off the family
farm to foreigners.?
It has also come to Diana and James? notice that Winanga has lent $10,000 (unsecured) to
Lucy so that she can start an online children?s fashion business. The loan is at 1% below the
rate the bank offered her and the bank was only prepared to lend her $5,000 on an unsecured
basis. The bank would only have given a $10,000 loan if it was secured.
For many years Ted and Veronica have supported the local National Party member Warwick
Knowles. At the next federal election Warwick has said that he is going to stand as an
independent and not stand for the National Party. Diana and James understand that Winanga
has contributed $20,000 to Warwick?s election campaign.
Diana and James are really angry about this as they think Warwick is a turncoat and should
not be supported as an independent. This is the final straw which leads them to seek your
advice. They think Winanga is being run for the benefit of those living on the company
property and that their interests are being ignored. They have not received a dividend for 3
They want to know whether there have been any breaches of the general or statutory
law and whether there is any action that they can take in relation to the events which
have occurred. Advise them.
Paper#9210744 | Written in 27-Jul-2016Price : $17.85